Few segments of the military aircraft market are growth areas today. Yet with shrinking force structures in the U.S., Europe and Russia, the need to rapidly transport available units remains as great as ever. European militaries, facing few threats in Europe, must look elsewhere for a raison d'etre. Where militaries are growing or maintaining their size (Asia), transports are obsolete and need replacing.

The military helicopter market is shrinking and will continue to shrink. The civil market is recovering from a devastating recession, but shows few signs of real growth. The big issue in this difficult market is rationalization. There are too many players to survive in a world of conglomerations and savage defense cuts. The problem will be acute in the U.S. as military programs wind down. STUBBORNLY INDEPENDENT COMPANIES

The turbine engine market is slowly rebounding from the worst recession in over a decade. Competition between engine makers is threatening profitability, and in the recent past led to the development of new products for any emerging application, no matter how dubious. Still, promising new engines are entering the market, which is already returning to health in several key sectors. And manufacturers are forging unprecedented new alliances, hoping to cut costs while increasing sales. BIG FAN MAKERS FACE REALITY